Market gauges Sensex and Nifty extended their losing streak to the sixth session on Wednesday as lingering Ukraine crisis continued to dent investor sentiment.

The Sensex closed 68.62 points or 0.12 per cent lower at 57,232.06 and the Nifty ended 28.95 points or 0.12 per cent down at 17,063.25.

For better part of session, both indices traded in the positive territory tracking mostly higher Asian peers as investors hoped that Western sanctions on Russia after Moscow's troop movements near Ukraine border might soften Vladimir Putin defiant tone and leave some room to avoid war.

The Sensex breadth was equally divided between gains and losses.

NTPC, L&T, Nestle and ICICI Bank shares dropped the most on the index.

Elsewhere in Asia, bourses closed mostly higher, hoping that war in Ukraine can be avoided after the US, Japan and European powers imposed sanctions on Russia.

Stocks closed lower on Wall Street on Tuesday after Russia sent forces into Ukraine's eastern regions, escalating tensions.

Russian President Vladimir Putin recognised the independence of two rebel-held regions of Ukraine, raising fears of an imminent full-scale invasion.

US Secretary of State Tony Blinken on Tuesday cancelled his scheduled meeting with his Russian counterpart Sergei Lavrov later this week in protest against what he said was the beginning of Russia's invasion of Ukraine.

Brent crude futures were last steady at USD 96.74 a barrel, having eased off Tuesday's top of USD 99.50.

Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth Rs 3,245.52 crore on a net basis on Tuesday, as per exchange data.